Arte Dental uses cost segregation to accelerate depreciation & pocket a huge income tax refund!
Dr. William Nguyen, DDS, engaged us to perform a cost segregation study on his new tenant build-out. His office is a state-of-the-art facility that is uber kid-friendly and has a calming environment. After completing our initial cost segregation site survey we anticipated reallocating about 30% to 5-year depreciation. An example of 5-year depreciable assets are carpeting, decorative trim and molding, dedicated dental sinks and electrical, X-ray electrical, security system, medical gas piping, video game and cable connections, and so much more. These assets are considered tangible personal property…an engineer-conducted cost segregation study is the most thorough and comprehensive way to determine what qualifies and what doesn’t.
IRS guidelines require owners of tenant build-outs (aka, leasehold improvements, tenant improvements, Qualified Leasehold Improvements (QLIs)), to allocate assets according to their respective life-class. The method IRS requires is called Modified Accelerated Cost Recovery System (MACRS). By applying cost segregation these tangible personal property assets can be accurately cataloged and depreciated.
When we completed our engineered cost segregation study we actually achieved over 47% reclassified assets to 5-year depreciation…wow!
Cost segregation delivers huge results every time it’s applied!
For details on how you can apply cost segregation to your office, click on FREE ASSESSMENT to get started.
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